The board of directors of Playmates Holdings Limited announced that based on a review of the group's preliminary financial results for the year ended December 31, 2014, the profit after income tax of the group for the year is expected to record a significant decrease as compared to that of 2013. The decrease is mainly due to (i) a significantly lower revaluation surplus arising from the revaluation of the group's investment properties for the year. The group expects that the revaluation surplus for the year is approximately HKD 437,000,000 as compared to HKD 766,838,000 for 2013; and (ii) a significantly higher income tax expense of the company's major subsidiary, Playmates Toys group.

The increase in the income tax expense reflects the impact of a normalized tax rate in 2014 as tax credits due to accumulated losses in prior years were substantially utilized during 2013. The company is in the process of finalizing the financial statements of the group for the year ended December 31, 2014.